Sell.
Investors,
Many of you should sell some of your assets.
I’m serious.
After historic levels of volatility & pessimism, this V-shape recovery has bailed you out, particularly those of you who let emotions get in the way of logic.
Many investors succumbed to fear.
Many investors let headlines influence their views.
Many investors were given an opportunity to embrace nuance.
They were given a test, but failed.
Now, many investors are either offsides or significantly underallocated.
They’ve failed.
But despite failing, some investors did just enough to stay in the game and they’re looking at a stock market that’s making fresh all-time highs. Some of them might even have their portfolios encroaching back on its prior all-time highs.
The market has bailed them out, for right or for wrong.
So why do I think it’s justified for many of you to sell some of your assets?
Because I want you to look in the mirror and genuinely reflect on these questions:
Did you panic in March and/or April?
Did you make rash decisions that you now regret?
Did emotions get in the way of you following a data-backed plan?
Did you lose sleep or have lower quality relationships with people in your life?
Do you feel like you’ve woken up from a bad nightmare?
Do you feel lucky to be back at ATHs?
There is zero shame in admitting if you answered “yes” to any of these questions.
At the end of the day, we need to know ourselves as investors…
Our weaknesses, our blindspots, our strengths, and our capabilities.
The only shame is pretending that we’re something that we aren’t.
So, if you answered “yes” to any of these questions… I have one final question for you:
Are you better prepared today to deal with a similar situation again?
Be introspective and honest because there is no benefit in lying to yourself.
If you don’t feel better equipped to handle higher volatility and market pressure in the future, then I think you genuinely need to reevaluate your capabilities, reduce some risk by selling some assets, and focus on sharpening your tools.
This V-shape recovery is allowing you to leave the casino unscathed.
It’s the harsh truth, but the truth nonetheless.
But it’s the advice that you won’t hear from 99% of analysts.
I’m encouraging you to be honest with yourself, then come back to the market.
I’m encouraging you to level up, then come back to the market.
More opportunities will be waiting for you, and you’ll be better equipped to capitalize on them and deal with uncertainty as a result of sharpening your tools.
Step #1… keep reading Cubic Analytics.
No matter what, I guarantee that you’ll stay sharp, be exposed to new methodologies, & constantly have the best pulse on the market that you can access as a retail investor.
So let’s begin with this latest edition…